Under International Financial Reporting Standards (IFRS) operating expenses may be presented by nature or by function.

Question

Quizplus · Accepted Answer

This is true. IFRS allows for the presentation of operating expenses by either their nature (such as salaries, rent, or utilities) or their function (such as cost of sales, marketing expenses, or administrative expenses). This choice depends on what information would be most useful for the users of the financial statements.

Under International Financial Reporting Standards (IFRS) Operating Expenses May Be